FREL vs SCHD
Fidelity MSCI Real Estate Index ETF vs Schwab US Dividend Equity ETF
Which is better, FREL or SCHD?
All Cap Blend against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 48.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FREL | SCHD |
|---|---|---|
| Expense Ratio | 0.08% | 0.06%Best |
| AUM | $1.5B | $112.1B |
| Dividend Yield | 3.27% | 3.00% |
| Holdings | 126 | 103 |
| YTD Return | +8.12% | +25.84%Best |
| 1Y Return | +4.99% | +30.18%Best |
| 3Y Return (annualized) | +9.25% | +16.08%Best |
| 5Y Return (annualized) | +1.18% | +9.97%Best |
| Volatility (annualized) | 17.1% | 14.8%Best |
| Max Drawdown | -43.5% | -33.4%Best |
| $10,000 over 5 years | $10,604 | $16,083Best |
| Top 10 Weight | 48.5% | 41.8%Best |
| Fund Family | Fidelity Investments (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | All Cap Blend | Large Cap Value |
| Inception | Feb 2, 2015 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Feb 5, 2015 to Sep 15, 2026 (11.6 years).
FREL vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 11.6 years both funds cover.
FREL vs SCHD Performance
Fidelity MSCI Real Estate Index ETF (FREL) is an ETF from Fidelity Investments (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year FREL returned +4.99% while SCHD returned +30.18%. Year to date, FREL is up 8.12% versus a gain of 25.84% for SCHD.
Over three years, FREL compounded at +9.25% per year against +16.08% for SCHD; over five years the annualized figures are +1.18% and +9.97% respectively. Across the full 12-year window we track, SCHD has the edge at +10.29% annualized vs +2.91%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FREL has been the more volatile fund, with annualized monthly volatility of 17.1% compared with 14.8% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -43.5% for FREL and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FREL charges 0.08% per year while SCHD charges 0.06%. On a $10,000 position that is $8 vs $6 annually, a gap of $2 per year that compounds over a long holding period. On income, FREL currently yields 3.27% against 3.00% for SCHD.
Holdings Overlap
We hold position weights for 123 holdings in FREL and 100 in SCHD, totalling 99.9% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 123 positions we hold weights for in FREL and 100 in SCHD, against full books of 126 and 103.
What only one of them owns
Measured across the 123 and 100 positions we hold weights for.
SCHD holds 99 positions FREL does not, 99.9% of the fund.
Largest: MRK 4.77%, AMGN 4.70%, ABT 4.69%, KO 4.17%, CVX 4.02%
You are not choosing between two funds in isolation.
Whichever of FREL and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FREL or SCHD?
FREL has an expense ratio of 0.08% while SCHD charges 0.06%. SCHD is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, FREL or SCHD?
Over the past year FREL returned +4.99% vs +30.18% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (12 years), FREL annualized +2.91% vs +10.29% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FREL or SCHD?
FREL has been the more volatile fund at 17.1% annualized versus 14.8% for SCHD. Worst drawdown: FREL -43.5% vs SCHD -33.4%.
Should I hold both FREL and SCHD?
FREL and SCHD have a monthly-return correlation of 0.76, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FREL or SCHD?
FREL yields 3.27% while SCHD yields 3.00%, so FREL currently pays the higher dividend yield.
Is SCHD better than FREL?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 48.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.